Spruce Point Shorts MSCI Alleging ‘Abusive’ Accounting (2)

Ben Axler’s Spruce Point Capital Management said it’s betting against MSCI Inc., alleging that the index provider engaged in abusive financial reporting and accounting practices to bolster earnings.

“We believe MSCI is a classic case of a struggling company failing to transform itself while engaging in value-destructive” acquisitions and share repurchases, the short seller said Wednesday in a report.

Shares of MSCI fell 0.8% on the day to close at $538.16 a share, extending its decline this year to 4.9%. Spruce Point called MSCI a “strong sell” and said that its stock could eventually decline as much ...